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29 June 2000 - Reuters

Philippine Government, rebels deny hostage release deal

JOLO, Philippines (Reuters) - Muslim rebels holding 20 mostly foreign hostages in the Philippines for over two months said on Wednesday they had not released any of their captives and government officials dismissed talk that a deal was near.

Speculation has been mounting in Manila that the Abu Sayyaf rebels may release some hostages this week to coincide with a meeting of the Organization of the Islamic Conference.

Foreign ministers of the 56-nation grouping are meeting in Kuala Lumpur until June 30.

Some sources in Manila have also said that a deal involving millions of dollars was being struck with the rebels and there may be a series of releases over the next two weeks.

``That kind of report is misinformation,'' Philippine national security adviser Alexander Aguirre told Reuters in Malaysia's capital. ``There is no such thing as that kind of negotiation.''

Robert Aventajado, the Philippine government's chief negotiator, denied a report in the People's Journal, a small Manila newspaper, that five of the hostages had already been freed.

He told Reuters no one had been released.

On Jolo, the southern island where the hostages are being held, an Abu Sayyaf spokesman also said there had been no release.

``None so far,'' rebel leader Mujib Susukan told reporters who trekked up to an Abu Sayyaf lair in the hills above the main town on the island, also called Jolo. He did not give details.

The rebels kidnapped 21 people from a Malaysian diving resort on April 23 and have since held them on Jolo, 600 miles south of Manila. A Malaysian forest ranger was set free last week, raising hopes that the drama may be coming to an end.

The remaining hostages are eight other Malaysians, three Germans, two South Africans, two French nationals, two Finns, two Filipinos and a Lebanese.

Philippine officials have said the rebels are demanding $1 million per hostage but have said they are not willing to pay any ransom. But officials privately say that money will have to change hands.

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